Dow Jones sheds over 400 points in early trade

The major US stock indices fell on Wednesday, after a surge in coronavirus cases and gloomy global economic outlook.

The International Monetary Fund estimated that the global GDP will shrink by 4.9% in 2020, which higher than the previous estimate in April of 3%, but the IMF expects a growth of 5.4% in 2021.

The IMF also forecast the US economy to shrink by 8% in 2020, and to grow by 4.5% in 2021, and the Chinese economy to grow by 1% in 2020 and by 8.2% 2021.

Fears about a new trade war from were renewed today, after the Donald Trump administration threatened imposing new tariffs on European goods worth $3.1 billion.

As for stocks, Dow Jones fell 1.6% or 402 points to 25,755  as of 14:15 GMT, Nasdaq fell 1% or 101 points to 10,029, and S&P 500 lost 1.4% or 43 points to 3,047.